NAFCU Reg Committee highlights proposals from CFPB, NCUA
NAFCU’s Regulatory Committee met Tuesday to discuss the latest issues and proposed rules open for comment, including the NCUA’s request for information (RFI) on climate-related financial risk.
NAFCU recently published a Regulatory Alert detailing the RFI, highlighting that the responses and data gathered through the RFI have the potential to impact credit unions through rulemaking related to governance, risk management, and reporting, as well as through modifications to examinations. In addition, the Reg Committee highlighted the NCUA’s 2023 Regulatory Review of one-third of its regulations as well as the approaching comment deadline for the agency’s proposed field of membership rule.
The committee reviewed proposals and RFIs from the CFPB, including:
- its recent policy statement on abusive acts and practices, which NAFCU also detailed in a recent Compliance Blog;
- the bureau’s recently proposed rule related to residential Property Assessed Clean Energy (PACE) financing that would prescribe ability-to-repay rules for PACE loans and apply the civil liability provisions of the Truth in Lending Act for violations;
- its joint statement noting that all their enforcement authorities also apply to automated systems; and
- the bureau’s notice that the use of LIBOR panels will end on June 30, 2023.
The meeting closed with discussion on the Financial Stability Oversight Council’s two notices of proposed rulemaking to address financial stability risks. The first notice consists of an analytical framework the council would use to assess financial stability risks. The second notice contains interpretive guidance on supervision and enhanced prudential standards for certain nonbank financial companies.
The Regulatory Committee will next meet June 13. NAFCU will remain engaged with regulators and ensure credit unions’ voices are heard in the rulemaking process.